Tools are well-known for tightening the loop of a bundle tie around a plurality of wires and other similar articles and for subsequently severing the excess strap. Examples of such tools are shown in U.S. Pat. Nos. 3,610,296, 3,830,263 and Re26,492. All of the above patented tools receive the free end of a bundle tie which has a loop disposed about a plurality of articles such as electrical wires or cables, tighten the loop about the articles by applying tension to the free end of the bundle tie, and subsequently cut the free end of the bundle tie closely adjacent to the loop which has been tensioned about the bundle of articles. None of the above patents are particularly suitable for tightening loops of bundle ties which are made of stainless steel or the like. For example, Re26,492 maintains tension upon the free end of the strap during the severing of the strap. This results in requiring additional force to cut the strap and may also cause the strap to tear during cutting. U.S. Pat. Nos. 3,610,296 and 3,830,263 both disclose tools which release the tension on the free end of the bundle tie after the desired tension has been received within the loop and which subsequently cut the free end of the bundle tie. However, in both of these designs, the tensioning takes place during a first portion of the movement of the handle of the tool and the cutting takes place only during a second portion of the movement of the handle. While these tools will perform in a satisfactory manner, it should be observed that a greater force may be required on the handle to cut the strap than with the tool of the present invention. Thus, only a small portion of the movement of the handle is utilized to cut the free end of the strap in the prior art patents, while a significantly greater proportion of the movement of the handle of the present invention may be utilized to cut the strap. Also, the prior art tools do not utilize the full stroke of the handle to tighten the strap, while the tool of the present invention may utilize the full stroke of the handle to tighten the strap. Furthermore, the designs of these tools do not lend themselves to the compact design of the present tool.